Hedge fund manager David Tepper has turned somewhat bearish in the stock market due to uncertainties about interest rates and inflation.
“I don’t think it’s a big investment this year,” Tepper said on Friday at CNBC. “Half-time report.. “I don’t know what interest rates will be next year … I don’t think there’s a great asset class right now … I don’t like stocks. I don’t like bonds. I don’t like junk bonds.” rice field.
The Federal Reserve has kept benchmark short-term interest rates almost zero since the outbreak of the pandemic.In recent weeks, authorities have They are ready to start tapering Monthly asset purchases, probably from November.
Many believe that rising inflation, which has been at its highest level in 30 years, could put pressure on central banks to quickly withdraw some of their ultra-simple monetary policy. According to traders, the Fed has stepped up its bet that a rate hike will move faster than expected, suggesting that market prices will be the first rate hike in September 2022. CME Fed Watch Tracker.
The founder of Appaloosa Management said comments are known to move the market, but his hedge fund was “probably too conservative” this year, but it worked for bets on commodities and oil. ..
“We kept that exposure relatively low, but we kept investing. I think we kept investing in the stock market to some extent, but we don’t have the best concentration we’ve ever had,” Tepper said. ..
However, Tepper emphasized that it was time to short the stock market and still believes that equities make a large long-term investment that everyone should own in their portfolio.
Hedge fund managers said stocks could see a recovery in bailouts if bond yields remain stable after the Fed moves to curtail its bond-buying program.
“If you sit here at 1.60% [on the 10-year Treasury yield] After the Federal Reserve Board announces the taper, you can get a rally. There may be a trading rally. You may go up 5% to 10%. I will come and go. “
Billionaire investors have recently made many forward-thinking calls, including foreseeing a market collapse due to the Covid-19 pandemic. In February 2020, before the S & P 500 entered the bear market, he was infected with the virus. Game changer for the market The stock “certainly destroyed the environment.”
In March of this year, Tepper turned bullish on the market and said it would be very difficult to be bearish on stocks. NS S & P 500 From February to August, it recorded positives for seven consecutive months, the benchmark rose by more than 20%, and Friday hit a record high.
David Tepper doesn’t think stocks are a big investment here, but says it all depends on rates
Source link David Tepper doesn’t think stocks are a big investment here, but says it all depends on rates